C.H. Robinson Worldwide Inc.
) has reported fourth quarter 2013 adjusted earnings per share of
62 cents, which fell short of the Zacks Consensus Estimate of 68
cents. Adjusted earnings plunged 60.8% from $1.58 in the year-ago
quarter. For 2013, earnings per share declined 27.8% year over
year to $2.65 and missed the Zacks Consensus Estimate of $2.71.
The weak result affected the share price as the stock declined
6.21% in aftermarket trade on Nasdaq on Tuesday.
Total revenue in the fourth quarter escalated 6.1% year over
year to $3.15 billion, but missed the Zacks Consensus Estimate of
$3.26 billion. Total revenue in the full year increased 12.3%
year over year to $12.8 billion.
Total operating expenses decreased 7.0% year over year to
$289.3 million in the fourth quarter, resulting in an operating
ratio (operating expenses as a percentage of net revenue) of
65.1%, down from 70.0%. Total operating expenses for the year
increased 10.7% year over year to $1,153 million. Total operating
ratio in 2013 was 62.8%, up from 60.7% a year ago.
The segment (comprising Truck, Intermodal, less-than-truckload,
Ocean, Air and Other logistics services) reported net revenue of
$416.0 million in the fourth quarter, up 1.7% from the year-ago
Net revenue from Truck (comprising truckload and
less-than-truckload services) decreased 5.6% year over year to
$256.1 million in the reported quarter, attributable to increased
cost per mile.
Net revenue from Intermodal improved 9.4% year over year to
$9.9 million due to change in business mix and improved customer
pricing, partially offset by decreased volumes.
Net revenue from Less-than Truckload (LTL) increased 3.2% year
over year to $58.8 million owing to increase in total shipments,
partially affected by a decline in net revenue margin.
Net revenue from Ocean surged 37.6% to $46.4 million. Air
transportation net revenue grew 12.8% year over year to $17.9
million while customs net revenue climbed 36.7% to $9.3 million.
All the increases were aided by Phoenix operations acquired in
Net revenue from Other logistics services registered 14.0%
year-over-year growth to $17.6 million.
The segment's net revenue decreased 15.5% year over year to $25.8
million based on volume and net revenue decline from a large
client, unfavorable weather condition and changes in commodity
and service mix.
The segment (comprising income from subsidiary, T-Chek Systems
Inc.) saw gross profit decline of 46.5% year over year to $2.6
million in the fourth quarter, driven by divesture in T-Chek
Liquidity & Debt Position
C.H. Robinson ended 2013 with cash and cash equivalents of
$162.0 million against $210.0 million in 2012 and had $375.0
million in debt on its balance sheet compared to $253.6 million
in debts last year. Cash from operations declined to $347.8
million at the end of the year from $460.3 million a year
We believe C.H. Robinson's asset light model with diversified
freight forwarding solutions provide earnings flexibility in an
economic downturn. However, factors like competitive freight
market, declining truckload market share and limited margin
expansion opportunities could restrict near-term growth. Further,
the increasing cost of transportation and volume loss from a
large sourcing client could also weigh on the stock in the coming
C.H. Robinson has Zacks Rank #4 (Sell).
Another logistic company,
Expeditors International of Washington Inc.
) is expected to report its fourth-quarter results on Feb 25,
before the opening bell. The company has a Zacks Consensus
Estimate of 46 cents for its fourth-quarter earnings.
Better-ranked stocks in this sector include
Grupo Aeroportuario del Pacifico S.A.B. de CV
American Railcar Industries Inc.
). Both have a Zacks Rank #2 (Buy).
AMER RAILCAR (ARII): Free Stock Analysis
CH ROBINSON WWD (CHRW): Free Stock Analysis
EXPEDITORS INTL (EXPD): Free Stock Analysis
GRUPO AEROP-PAC (PAC): Free Stock Analysis
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